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Mortgage director banned by FSA

Published on 8 Feb 2010 under category: legal

A director of a mortgage and general insurance firm has been banned from working in the financial services industry after losing approximately £85,000 of his customers' money.

The Financial Services Authority (FSA) has imposed the ban on director Matthew Sixsmith after he violated client money rules by using one account for both his business and customer funds.

When his firm Bridgewater House UK ceased trading last September, approximately £85,000 of customer money was lost.

The company also arranged insurance premiums in connection to subprime mortgages. Sixsmith did not keep records of when these premiums were to be paid out, causing approximately 700 to lapse last year.

Margaret Cole, director of enforcement at the standards body, said: "Sixsmith was incompetent and his actions posed serious risks to customers who trusted him with their money and expected him to pass that money on to insurers.

"The FSA would have imposed a penalty of £25,000, but this would have placed Sixsmith in serious financial hardship. Sixsmith will not be able to hold senior positions in the financial services industry."

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